Pension Income Split

Income tax policy, rules, problems, strategy and software. Property and consumption taxes too.
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max88
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Joined: 26 Oct 2007 21:29
Location: Toronto

Pension Income Split

Post by max88 »

I received a T4A for a lump-sum payment in box 018, for an Excess Amount payable (and paid) in cash after my defined benefit pension was terminated as result of end of employment. The Excess Amount is pension commuted value minus locked-in and transferable amount.

Studio Tax has a warning about possible tax savings by pension income split (T1032). Upon search, CRA has a page on pension income splitting for people less than 65 year old http://www.cra-arc.gc.ca/tx/ndvdls/tpcs ... 4-eng.html, in addition to a page for people 65 or older http://www.cra-arc.gc.ca/tx/ndvdls/tpcs ... 6-eng.html.

I thought how nice the government is for allowing pension income split at less than 65... until I cannot find box 018 on the list. :x
I am cautiously optimistic. When it goes up, I claim I have been optimistic; when it goes down, I claim I have been cautious.
twa2w
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Joined: 22 Feb 2005 13:08

Re: Pension Income Split

Post by twa2w »

Yep, the type of payment you received dnq for income splitting.
fraser
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Joined: 15 Jun 2015 13:04

Re: Pension Income Split

Post by fraser »

You can certainly split your DB pension income. That income should be in box 16...it is the sum of the monthly pension income during the year.

My experience is that the amount in Box 18, Lump Sum Payments, cannot be split your spouse/partner.
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